Central Bank grants licenses to 12 more digital credit providers
The Central Bank of Kenya (CBK) has on Monday granted licenses to 12 new Digital Credit Providers (DCPs), bringing the total number of licensed providers to 22.
The most recent lenders to obtain a license from the CBK are Inventure Mobile Limited (Trading as Tala), Jumo Kenya Limited, Letshego Kenya Limited, MFS Technologies Limited and M-Kopa Loan Kenya Limited.
Others are Mycredit Limited, Natal Tech Company Limited, Ngao Credit Limited, Pezesha Africa Limited, Sevi Innovation Limited, Tenakata Enterprises Limited, and Umoja Fanisi Limited.
The move by the CBK, which comes in response to growing public concerns regarding the predatory practices of unregulated digital credit providers, aims to safeguard consumer interests and promote responsible lending practices in the sector.
Over the past few months, the lenders have worked closely with the applicants to review their business plans, consumer protection practices, and the suitability and propriety of their proposed shareholders, directors, and management.
CBK emphasized that the licensing procedure was created to guarantee that customer interests are protected and that the providers follow applicable laws.
“CBK has received 381 applications since March 2022 and has worked closely with the applicants in reviewing their applications. Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner,” CBK said.
The CBK has also established a system for the public to report unregulated digital credit providers, with details of the 22 licensed providers available on the bank’s website. Reports of unregulated providers can be sent through firstname.lastname@example.org.